How do I file my taxes if i get paid cash and no money gets deducted ?

Question

MY BOSS PAYS ME BY PERSONAL CHECK AND NO MONEY GETS DEDUCTED FOR TAXES AND STUFF I NEED TO KNOW WHAT FORM TO FILL OUT AND HOW MUCH WILL THE PENALTY FEE WILL BE..IF ANY...THANKS

Answer 1

you should get a 1099 from your boss stating what you were paid in 2006. Then, you take that form to your tax preparer and the will to your taxes with that. You have to pay social security tax on it for sure.

Answer 2

If nothing is getting deducted, you might or might not get a 1099 for what you made. You're not likely to get a W-2.

If you get a 1099, you will use that to file your return. You'd fill out a schedule C or C-EZ, and a schedule SE. You'll owe regular income tax, plus 15.3% self-employment tax for social security and medicare. You'll also probably owe a penalty for not filing quarterly estimated taxes, but it's not likely to be much.

If you don't get a 1099, you need to file the same as if you did. Some people here have told you that you just wouldn't have to pay taxes on it. They're telling you to break the law. You might get away with it, you might not. But if they told you to go hold up a gas station, would you do it? I don't think so, even if you thought that you MIGHT get away with it.

Depending on what kind of job you have, the way your boss is paying you might or might not be legal. If you don't get a 1099 from him, it's illegal - for him. You don't want to get involved and end up in trouble right along with him, if he gets caught. It would be called working "off the books" or "under the table" and can cause you a lot of trouble down the line. If you don't get a 1099, I'd ask him about it - once - then go look for another job.

Good luck.

Answer 3

If he is paying you by personal check and doesn't deduct anything then you may be paid "off the books". He isn't paying into things either...is this legal?? Your employer has to match certain things (FICA-Social Security) and has to provide you with things like disability ins. He also has to pay for unemployment. By paying you by personal check he is getting away with not paying or providing these things. Unless you were hired as a private contractor, freelance worker..etc, then he would have to give you a 1099 form which states how much he has paid you and you are then responsible for your own taxes. Any accountant knows what to do with a 1099 form...just bring it to them and they will fill out the tax forms you need to file.

Answer 4

How old are you? If youre a young person student and your parents still claim you then no, you wont get the rebate even if you file, youll get your refund or claim a loss for the business venture, make sure nobody is claiming you, then go for it, youll get the 300. Your family friend could ammend his return if the money he gave you helps him get more money, you could ask him toget an estimate, but I doubt he will, he already maybe got his money, but that doesnt mean you cant claim it, you still can, but you would owe money on that amount, so have to claim expenses did you buy tools, stuff to do this job if not its not worth fiing, you will owe probably the same amount from the rebate, its money under the bridge so why report it, maybe next year if youre turning this venture into a business then you could start filing your costs and expenses.

Answer 5

If you make less than $20,000 a year there is no need to file taxes because you are in the lowest bracket. If you make more than that, you have to file and you will owe the IRS at least 20% of your total income, if not more. If this has happened for more than just last year, you will owe back taxes. First check if your boss has an 1099 form filed for you. If so, it's up to you to file. If you're a student then you're ok to file and not owe.

Personally, I wouldn't worry about it. It will be on your boss if caught.

Answer 6

You should not be filing taxes. That's why getting paid that way is refered to as getting paid "under the table". Also, it's illegal - though not exactly rare. You won't be getting any W-2's because the IRS didn't know that you made that money and you didn't pay any taxes on it. Basically, if you call the IRS to find out how much you "owe", your boss will, no doubt, get audited.

Answer 7

This does mean you are getting paid under the table-- which is illegal for the employer. It is also illegal for you if you do nothing-- if it is ever discovered you will owe penalties,etc. (See what just happened to Wesley Snipes?)

You can rectify the situation by filing taxes yourself and reporting the income. This is helpful to you if you ever want to collect disability or social security from the gov't. You would need to pay taxes to IRS and to Social Security in order to make this right. Go to website below and do a search.

Answer 8

Why did you accept this set up? IF he doesnt give you a 1099 form (meaning you are being paid as a contractor), you are pretty much in an illegal position.

I would immediatley request a 1099 from your boss. He shouldnt have a big problem with it, because now he can report the money as a legit business expense.

Answer 9

You need to file a 1099, make copies of your pay checks,and keep track of your INCOME. When you file this 1099, your boss is going to have to explain why he hasn't given you the proper paperwork himself! The IRS see payment of any kind as INCOME, so to cover yourself, file your taxes based on what you know you earned and pay your taxes from the proper table in your tax book.

Answer 10

You are probably not on payroll, if your being paid personal check. Talk to him first and see what he is doing, because if you claim money and place of work, and he is not showing you on his payroll roster he can get audited by the IRS. Also, if he pays personal check, you probably dont have workers comp and insurance as an employee. But again, talk to your boss first.